A View From The Press Box

In actuality, the invitation to the event posed the question in a less direct way: Could more competition have solved the post-Katrina insurance problems on the Gulf Coast?

But as they described the topics to be discussed, the panel's true theme was loud and clear--federal regulation:

"Insurance companies are currently regulated entirely by state governments. During this congressional session, it is expected that Senators Tim Johnson, D-S.D., and John E. Sununu, R-N.H., will cosponsor legislation that would create an optional federal charter for insurance, allowing companies to organize under federal rather than state laws," the group notes.

"Advocates of this proposal argue that an optional federal charter would enhance competition and make insurance more affordable, while opponents claim that it would make insurance even harder to obtain for people of modest incomes.

"This debate over an optional federal charter has drawn considerable attention in the wake of Hurricane Katrina. In many states along the Gulf Coast, homeowners’ insurance premiums have risen dramatically, and many companies have either restricted coverage of—or withdrawn entirely from—certain areas.

"Although state governments have launched a variety of efforts to make insurance more available, some experts believe that these reforms are unlikely to create a sustainable insurance market."

Among the questions posed to the panelists:

--Would federal legislation create a more competitive market in areas afflicted by natural disasters?

--Would a more competitive market solve the problems faced today by the Gulf Coast?

--How might an optional federal charter affect the affordability of insurance in Gulf Coast states?

NU covered the event (click here for the story), but anyone who wants to weigh in on these questions right now is welcome.

The panelists included Debra T. Ballen, executive vice president of public policy management at the American Insurance Association, and Carl M. Parks, senior vice president of government affairs at the National Association of Mutual Insurance Companies. Also on hand were Shirley D. Bowler, a Republican in the Louisiana House of Representatives; George A. Pieler, a senior research fellow at the Institute for Policy Innovation; and Scott A. Sinder an attorney with Steptoe & Johnson LLP.

To check out a video Webcast of the event, go to AEI's Web site at www.aei.org/eventvideos.